- The Nigerian government has invested over USD 450 million in the CNG initiative to reduce transportation costs and promote cleaner energy.
- The initiative has already converted 10,000 vehicles to CNG, with a target of over 1 million conversions by 2027.
The Nigerian government has committed more than USD 450 million to the country’s compressed natural gas (CNG) initiative, aiming to tackle rising fuel costs and promote cleaner energy. This substantial investment is part of an ambitious plan to transform the nation’s transportation sector by developing a robust CNG infrastructure. Since its launch in August 2023, the initiative has been focused on creating a network of CNG mother stations, daughter stations, refuelling stations, and vehicle conversion centres across Nigeria. These developments are part of the Nigerian government’s broader strategy to reduce the cost of transportation and provide a more sustainable fuel alternative.
Tosin Coker, head of commercial operations for the Presidential CNG Initiative, shared project details during the 2024 Nigeria Energy Forum in Lagos. He revealed that the initiative has already led to the conversion of more than 10,000 vehicles from petrol to CNG, to convert over 1 million cars by 2027. This ambitious target is part of the government’s broader strategy to reduce dependence on expensive gasoline and make CNG a mainstream fuel source for private and public transportation.
The CNG initiative was launched in response to President Bola Tinubu’s decision in May 2023 to end the long-standing subsidy on gasoline. This decision was a key part of efforts to address Nigeria’s ongoing cost-of-living crisis, exacerbated by the subsidy removal. In the wake of this change, the government shifted its focus to CNG as a more affordable and sustainable fuel option, particularly for the transportation sector. Using gas-powered vehicles instead of petrol, the government aims to reduce transportation costs by nearly 50%, making travel more affordable for millions of Nigerians.
Coker highlighted that the initiative offers a more affordable fuel option and provides environmental benefits. He emphasised that CNG is a cleaner fuel alternative, reducing harmful emissions and improving air quality. The government has been actively educating the public about the benefits of using CNG, stressing its affordability, environmental advantages, and long-term sustainability.
The CNG initiative is crucial in addressing Nigeria’s economic and environmental challenges. By investing in this alternative fuel source, the government hopes to create a more sustainable energy future for the country while easing the burden on citizens affected by the rising cost of living. As the program expands, it is expected to play a significant role in Nigeria’s transition to cleaner, more affordable energy solutions.